Why micro data centers will dominate the US market

Large corporations, SMEs and hospitals all have a growing need for portable, secure data storage solutions

20Jun

The global micro data center market will witness immense growth in the years to come due to the rapid technological advancements in IT and telecoms which have led to expansion in data center infrastructures worldwide. As online banking and shopping, satellite navigation systems, smartphones, TV and movie streaming gain traction, relocation of IT infrastructure becomes mandatory. This increases the demand for modular data center architecture that will drive the global micro data center market size.

Global Market Insights, Inc. estimates the North America micro data centers market size to register a CAGR of more than 23% between 2019–25, growing to $14.5bn by the end of the period. The growth will be driven by the launch of various micro facilities by important technology giants such as Schneider Electric and IBM. The expansion ofdata center infrastructure marketin the region will also propel North America micro data center market share.

This growth is a consequence of the rising need for containerized data centers for corporate offices that consistently relocate their infrastructure. With rising workloads, companies are focusing more on data center expansion. However, enterprises are now wanting to make their presence felt on the cloud, leading to the requirement of portable data centers. Micro data centers have a smaller footprint than conventional data centers, cost less and suffer less latency, according to Kevin Brown, CTO of Schneider Electric, which means small and medium enterprises will likewise have better access to data centers in future.

The healthcare sector will be another major proponent of the micro data center industry. Medical care centers demand efficient power systems for consistent access to patient electronic health records. Since conventional data center infrastructure requires a huge investment, the need to store more data puts immense pressure on hospitals, emergency clinics and rehabilitation centers. But miniaturized, portable data centers eliminate a lot of the up-front investment and in ideal scenarios can reduce data costs by 50%. As a result, medical care facilities are turning to micro data centres to capitalize on space.

Prominent industry giants are consistently making investments in portable data center solutions to cater to rising demand from hospitals, IT companies, telecom firms, banking establishments, etc. For example, in March 2019, Schneider Electric declared the launch of new solutions for micro data centers which combine APC by Schneider's physical infrastructure with Cisco's HyperFlex Edge that delivers efficient, fast deployment in edge environments.

Companies partaking in the micro data center industry share are trying to enhance their presence by coming up with new, more efficient portable data center solutions. Cisco and Schneider Electric's partnership on micro data centers will provide system integrators and IT global channel partners the access to new reference designs for deploying the HyperFlex Edge that can be suitably customized for particular micro data center needs.

Delta Power Solutions has a product portfolio of the Delta InfraSuite – a highly integrated, next-gen modular data center solution that uses racks and integrates cooling, lightning protection, wiring, fire control, UPSs and airflow management together to ensure physical security for data storage.

The rising demand for pre-integrated, physically secure and remotely monitored containerized data center solutions is pushing out traditional data centers – Gartner estimates that 80% of enterprises will move on from data centers by 2025, a market gap which will be filled by innovative industry players in the micro data center market.

Ibm's blockchain service goes multicloud small

Read next:

IBM's blockchain service goes multicloud

i